Pakistan finance chief urges faster payouts from climate loss and damage fund
KARACHI: Pakistan's Finance Minister Muhammad Aurangzeb on Friday urged the international community to ensure faster and simpler disbursements from a new global fund set up to help vulnerable countries respond to climate-related losses.
The Fund for Responding to Loss and Damage (FRLD), established at the COP27 climate summit in Egypt in 2022 before being officially operationalized by 198 countries, aims to help developing and least developed countries (LDCs) cope with both economic and non-economic impacts of climate change, such as extreme weather events and slow-onset crises like sea-level rise and droughts.
Aurangzeb made the remarks while addressing a high-level dialogue over the issue, held on the sidelines of the World Bank and International Monetary Fund's Spring Meetings in Washington.
'Emphasizing that simplicity and agility should be the guiding principles, the finance minister urged the need for speedy disbursements under the fund, unlike the experience of LDCs and other vulnerable nations with existing climate finance mechanisms,' Pakistan's finance ministry said in a statement circulated after the dialogue.
Aurangzeb also stressed the importance of 'the integrity of the whole process with adequate checks and balances,' according to the statement.
He said Pakistan had been among the strongest proponents of the fund, warning that climate change represents an 'existential threat' to countries like his own.
Pakistan has experienced increasingly erratic weather patterns in recent years, including heatwaves, droughts, cyclones and glacial melting.
In 2022, record monsoon rains triggered floods that killed over 1,700 people, affecting 30 million more and causing economic losses exceeding $30 billion.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Arab News
11 hours ago
- Arab News
New virtual assets regulator tops agenda as Pakistan crypto council meets today
KARACHI: Pakistan plans to establish a regulatory body to oversee digital assets, with the proposal set to be at the top of the agenda of a meeting today, Monday, of the Pakistan Crypto Council (PCC), the finance ministry said. Pakistan set up the PCC in March to create a legal framework for cryptocurrency trading in a bid to lure international investment. In April, Pakistan introduced its first-ever policy framework, created by a special government group under the Anti-Money Laundering (AML) and Counter Terrorism Financing (CTF) authority, to set rules for how digital money like cryptocurrencies and the companies that deal in it should operate in Pakistan. The policy has been formulated to align with compliance and financial integrity guidelines of the global Financial Action Task Force (FATF). Last month, the government also approved setting up the Pakistan Virtual Assets Regulatory Authority (PVARA), a specialized regulatory body to oversee blockchain-based financial infrastructure. 'The Pakistan Crypto Council will convene a high-level meeting on Monday, 2nd June 2025, to be chaired by Senator Muhammad Aurangzeb, Federal Minister for Finance and Revenue,' the ministry said in a statement. Aurangzeb is also the chairperson of the PCC. 'Key items on the agenda include the development of a robust regulatory framework to govern digital and virtual assets in Pakistan, in alignment with global standards and technological advancements,' the statement added. 'A focal point of discussion will be the groundwork for the establishment of the Pakistan Virtual Assets Regulatory Authority (PVARA) — a proposed autonomous body to oversee the digital finance and crypto ecosystem in the country.' Earlier this month, Pakistan announced the allocation of 2,000 megawatts (MW) of electricity in the first phase of a national initiative to power bitcoin mining and artificial intelligence data centers. The allocation is the first phase of a broader, multi-stage digital infrastructure roll-out. Last week, Bilal Bin Saqib, the CEO of the Pakistan Crypto Council, unveiled the country's first government-led strategic bitcoin reserve at the Bitcoin 2025 conference in Las Vegas. The central bank said last week it had not declared virtual assets illegal but had in 2018 advised regulated entities to avoid dealing in virtual assets 'due to the absence of any legal and regulatory framework.' 'This was done to protect its regulated entities and their customers from the risks emanating due to the absence of legal and regulatory framework for VAs in the country,' the central bank said in a statement. 'The SBP and Finance Division are currently engaged with the Pakistan Crypto Council established by the Federal Government for, among others, developing an appropriate legal and regulatory framework for VAs in Pakistan. We understand that the legal and regulatory framework would provide the requisite clarity and legal coverage about the VAs ensuring consumer and investor protection.'
Arab News
11 hours ago
- Arab News
Lit by the sun: How solar power is transforming lives along Pakistan's southern coast
SUJAWAL, Sindh: Holding a battery in one hand and an LED light in the other, Abdul Ghani waded through the salty waters of the Arabian Sea to reach his small wooden boat. It was just past sunset, the sky dimming fast, but Ghani had no fear as he had light. Ghani is one of hundreds of Pakistani coastal residents who have benefited from a green energy initiative under the World Bank-backed Sindh Solar Energy Project (SSEP), a multi-component program that aims to bring sustainable power to over 1.2 million of the southern province's poorest and most energy-deprived people. While torches don't offer adequate visibility in the vast seascape, and boat generators scare fish away when powered on, the battery-powered LED lights from the home energy system have proven to be an unexpected boon for nighttime fishing for residents like Ghani. 'Earlier, I couldn't catch any fish, but now when I go fishing using these lights, by the grace of God, I catch good fish,' the 45-year-old fisherman from Karo Chan, a coastal village in Sujawal district located in Pakistan's southern Sindh province, told Arab News. 'This helps me support my children and manage our livelihood.' The project targets people either without any electricity or facing power cuts, identified through Pakistan's national poverty scorecard, a data-driven assessment tool used to identify and prioritize assistance for low-income households. 'Each family has a solar system with fans, three LED light bulbs, mobile charging facility, along with a charge controller and a battery package,' Mehfooz Ahmed Qazi, the project director, told Arab News. 'All these cost Rs6,000 ($21), ten percent of the actual price, to instill a sense of ownership in the users.' Qazi said the project, launched in October 2019 and set to be completed in July 2025, had four components: a 400-megawatt solar power initiative for grid integration, rooftop solar systems for public sector buildings including 34 district headquarter hospitals, off-grid solar home systems for poor households and the establishment of solar equipment standardization laboratories at NED University in Karachi and Mehran University in Jamshoro. The key objective of the project is to promote the potential of green energy across the province. Out of the 400 megawatts planned for grid integration, 270 megawatts will be added to the system of K-Electric — serving over 3.4 million customers in Karachi and surrounding areas in Sindh and Balochistan — not only increasing the share of green power but also helping reduce electricity tariffs for residents of Karachi. By the end of the project, 34 megawatts of rooftop solar installations will be set up on buildings across the province, while 200,000 solar home systems will be distributed, benefiting 1.2 million families. Of these, 50,000 families in five coastal districts, including Sujawal, will receive solar home systems under the third component of the project that started in February this year. For families like Ghani's, the change has been immediate and life changing. 'I turn on three lights,' he explained. 'When we turn on the lights, small fish come. Seeing the small fish, the big ones also come. Where I place my net, both big and small fish come into it.' Ghani also uses the system at home once he returns from the sea. His wife, Kulsoom, said life, was once defined by heat, insects and fear of the dark, had now changed. 'Previously, there used to be complete darkness,' she said. 'The children would be distressed. We didn't even have a fan. It used to be extremely hot, and we would suffer.' Like many women in rural Sindh, Kulsoom's day revolves around managing the household and caring for her children. Now, her nights are more peaceful. 'Now that we have solar [system], we are very happy, and the children sleep peacefully,' she said. 'COMPLETE DARKNESS' In village Qaboolpur in the nearby Tando Muhammad Khan district, Naeema Gul, 47, had similar story. Her husband, Gul Bahar, is deaf and mute. They have six children, one of whom has polio. 'We didn't have electricity,' Gul said. 'We used hand fans. It would get extremely hot, and there were always mosquitoes … Now, thank God, we have received solar energy. Earlier, our home used to be in complete darkness. Now we have light.' Gul uses the fan provided with the solar system during peak summer heat, and the LED lights allow her to do embroidery on traditional ralli quilts, colorful patchwork textiles made by rural women in the province. She also uses the light to recite the Holy Qur'an at night. Her disabled son, Gulzar, a fifth grader, has also resumed his studies. 'After receiving the solar panel, I can study and write with ease,' he said. For women like Changi Rind, a widow with 10 children and dozens of grandchildren living in remote Jan Muhammad Jatt village of Sujawal, the biggest relief has been security. 'Previously, thieves used to come, but now, because of the light, they stay away,' she said. 'At night, one person had to stay awake. There was no light in the wilderness, only darkness.' Back in Karo Chan, as night fell, Ghani's returned on his boat with a modest catch, unpacked the system and handed it over to Kulsoom. With a fan whirring in the corner and her children sitting under LED lights, she reflected on how far the community had come: 'Where there was once darkness, solar [system] has brought light to our home and our lives as well.'
Arab News
a day ago
- Arab News
Pakistan reaffirms commitment to macroeconomic stability as Ipsos survey shows rising consumer trust
KARACHI: Pakistan on Sunday reaffirmed its commitment to macroeconomic stability after Ipsos, a Paris-based global market research and consultation firm, said consumer confidence grew in the South Asian country in the second quarter of this year. The Ipsos survey revealed a significant surge in consumer confidence, with 42% of Pakistanis now believing the country is heading in the right direction — the highest level recorded in six years. Perceptions of the economy being strong reached their most favorable levels since August 2019, and optimism overtook pessimism that marked a key psychological shift among the population, according to the survey. Pakistan's Finance Minister Muhammad Aurangzeb said the 'encouraging' data reflected the success of his government's disciplined and targeted macroeconomic strategy implemented over the last 14 months. 'He highlighted that consumer confidence in making major purchases and investments has doubled compared to the same period last year, indicating that households are beginning to feel more secure in their financial prospects. Similarly, confidence in job security is now at its highest since 2019, a sign that labor market conditions are gradually stabilizing in response to pro-growth policies and reforms,' the finance ministry said. 'Senator Aurangzeb reaffirmed that the government remains committed to maintaining macroeconomic stability, accelerating structural reforms, and ensuring that economic growth translates into real and inclusive progress for all citizens.' The development comes amid stabilization of key economic indicators, including inflation, exchange rate, foreign exchange reserves and fiscal discipline, that has led a renewed public trust in Pakistan, which is currently on path to economic recovery under a $7 billion International Monetary Fund (IMF) program secured in Sept. last year. Aurangzeb pointed out that this upswing in consumer confidence spans across urban and rural areas, and is particularly evident among youth and women, demonstrating the broad-based nature of the economic turnaround. He linked this optimism to sustained government efforts to create an enabling environment to enhance private sector growth, exports, social protection and financial inclusion. 'The findings of the IPSOS survey are a timely validation of Pakistan's economic direction and a clear signal that the country is on a steady path toward recovery and resilience,' the minister said.
